SET index closes higher, but below 1,300pts
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The Stock Exchange of Thailand composite index edged up today. Though closing at a new 16-year high, the index is slightly short of the psychological 1,300-points level.
At the close, the index gained 0.92 points or 0.07 per cent to 1,299.71 points on turnover of Bt31.1 billion.
Throughout September, foreigners were net-buyers, with net-buy positions of Bt3.27 billion. This pushed year-to-date net-buy positions to Bt65 billion.
The data for today is not yet available, as of 5.15pm.
At noon, the index gained 2.32 points or 0.18 per cent from the previous closing, to 1,301.11 points. if it stays at this level at the close, this will be yet another 16-year high.
Brokerage houses foresee great volatility this week, mainly by external factors.
"Indeed, at the current valuation, the index is at an expensive level, with the forward 2012 price/earning ratio at 14.1 times against a 13.1-times median and forward 2012 price-to-book value ratio of 2.2 times, against the 2-times median. As the index is heading to 1,300 points, investors should be careful," Surachai Pramualcharoenkit, executive director
of Trinity Securities, said in "Market View" column in The Nation.
Though convinced that the index would surpass 1,300 points this week, Chaiyaporn Nompitakcharoen, head of tactical research of Bualuang Securities, warned that the EU should remain in trouble on risk of a currency break-up, as banking union, fiscal union and political union all appear to be under a cloud.
"Fund inflows into Asia can be expected. Though for now it seems that this capital will flow into the Thai fixed-income market rather than equities," Chaiyaporn said.
